Iron Pellet manufacturers based in Odisha, the largest Pellet producing state with an installed capacity of 25.8 MnT, have lowered prices by INR 200/MT to INR 6,350/MT (Ex-Barbil). They foresee a further downtrend by INR 150-250/MT in this week.
“New Environmental Clearance (EC) limit to Odisha Iron ore mines in FY15 will increase the supply of raw material and build pressure on its prices. Demand-supply of Pellets in the domestic market is fine. Pellet offers at Barbil may drop to INR 6,100-6,200/MT by the end of this week,” senior official of a Pellet making company told SteelMint.
If that happens, prices will touch an all time low of INR 6,100/MT again in FY14, seen on 22 Jul, 2013. Across India, Pellet prices are losing strength, following the trend of the eastern part.
Brahmani River Pellets (Jajpur) to Ship 81,500 MT Pellets
|
Port |
Vessel Name |
Quantity (in MT) |
Vessel Status |
|
Paradip* |
Eternal Triumph |
55,000 |
Expected on 26 Mar’14 |
|
Dhamra** |
Agatis |
26,500 |
Expected on 26 Mar’14 |
*Export sale; **Coastal movement
Central India Sponge Iron Plants procure Pellets from Bhushan Power & Steel
Major manufacturers in Raipur (Chhattisgarh), having 0.6-1.8 MnT pa Pellet installed capacity, are not offering the material in big quantities. Hence, steel plants are procuring Pellets from Bhushan Power & Steel (Jharsuguda) at a landed cost of INR 7,500/MT CST extra.
Though, Pellet offers in Bellary (Karnataka) have room for some correction, no relief in Iron ore fines prices from Karnataka’s e-auction as Pellet prices are not losing strength.
Jindal Saw may cut offers by INR 400-500/MT
Jindal Saw, having an installed capacity of 1.2 MnT pa Pellet plant in Bhilwara and the most preferred source of raw material for steel mills in Gujarat, offering Pellets at INR 8,400/MT (delivered; excluding CST and excise).
Presently, BRPL is selling Pellets to Gujarat (Kandla/Mundra Port) through traders at around INR 8,100/MT (delivered) which has forced Jindal to cut prices.
Trade wise
Arya Iron & Steel (Barbil) and Tatanagar based manufacturer are quoting Fe 63 Pellet prices at INR 6,350/MT.
Bhushan Power & Steel (Jharsuguda) is offering Pellet at INR 6,900/MT (by road) and INR 6,850/MT (by rake).
Gujarat based steel mills purchasing Pellets from BRPL- Sources
Bellary (Karnataka)
MSPL prices drop to INR 7,900/MT for Fe 62.5 Pellet; Xindia Steels offers Fe 62 at INR 7,725/MT.
BMM Ispat is offering Fe 60 Pellet at INR 7,200/MT and Janki Corp at INR 7,100/MT.
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